South Korea's YCChem (112290.KQ) is planning to raise about 30 billion won (approx. $21.5 million or 153 million yuan) through the issuance of convertible bonds (CB) and bonds with warrants (BW) to finance mass production of key materials for semiconductor glass substrates.

According to industry sources, YCChem has appointed BNK Investment & Securities as the lead manager and is currently in discussions with asset managers and securities firms. The company intends to raise 20 billion won via CBs and 10 billion won via BWs. Earlier this year, YCChem secured 9 billion won through a CB issue to support semiconductor materials R&D and working capital.

The new funding will be directed toward scaling up production of three essential glass substrate materials—glass transfer agents, core materials, and conductors. Product development has already been completed, and mass production lines are expected to be established in the second half of this year.

Industry analysts note that YCChem's investments are also likely to extend to new technologies such as photoresists for through-silicon vias (TSVs) in high-bandwidth memory (HBM), where demand is accelerating. YCChem's TSV photoresist, already adopted by SK hynix, has been recognized as best-in-class in the chipmaker's supplier evaluations.

Founded in 2001 as Youngchang Chemical and renamed YCChem in 2022, the company has built its reputation on nano-technology-based materials for semiconductors and displays, positioning itself as a leading domestic supplier under Korea's materials, parts, and equipment (MPE) localization drive.

Despite posting 70.3 billion won in revenue last year, YCChem has remained in the red since 2023 due to the industry downturn. However, with semiconductor market conditions improving and SK hynix expanding supply, expectations are rising for the company's return to profitability.

YCChem confirmed it is pursuing funding but said details on the specific allocation of proceeds have not been finalized.